The aggregate production function is Y = 5KL. If there are 18 units of capital and 50 units of labor, aggregate output is

Refer to Table 11-1. Based on the table above, which country has a higher standard of living and why?

A) Sweden has a higher standard of living because their GDP per capita is higher. B) Sweden has a higher standard of living because their GDP is higher. C) Ireland has a higher standard of living because their GDP per capita is higher. D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.

In the short-run, we assume that the money prices of goods and services are

A) temporarily fixed. B) permanently fixed. C) allowed to fluctuate. D) equal to long-run prices. E) fully employed.